2.2
3.8
Overall Score
Author: Kaitlyn Short
Carvana is an Arizona-based online-only car sales company with an inventory of 17,700 certified pre-owned cars.
Users browse, shop, and even finance and purchase their car online, without visiting a car dealership. Payment is accepted via checking or savings account ACHs or cashier’s checks. Although this is an online purchase, you can’t pay with a credit card. You also have the option of buying a car with Carvana or third-party financing.
Prices are often below Kelley Blue Book value, and the company offers a hassle-free purchase process with haggle-free price for each vehicle. There are no hidden fees. Each car is shown with an “out-the-door price” transparently displayed for each vehicle listing. This price includes the following:
Carvana service areas:
Customers have a couple options to complete their Carvana Experience:
When you make a purchase on Carvana, buyers still take a 15-20 minute test drive upon either delivery or pickup.
To emphasize the easy, introvert-friendly, pressure-free experience, each pickup location is referred to as a car vending machine rather than a dealership. Carvana Vending Machine locations include the following:
With Carvana, a new car can be fully purchased online at your own pace through the site. The site offers an online showroom-type experience with a unique HD 360-degree photo experience for every vehicle — with interior and exterior images of the actual vehicle listed.
While shopping, each car profile includes a free CarFax vehicle history report. You can also compare it to other models in your area. With an account, you can save favorite vehicles or a search that you commonly run. This online-only experience will be a plus for anyone who wishes to avoid a high-pressure sales experience.
Carvana is very selective about the cars they choose to sell. Less than 10 percent of cars appraised are selected for the site.
All of the site’s inventory are Certified Pre-Owned vehicles and are put through a 150 point mechanical inspection. Additionally, vehicles that have been in a reported accident or have had structural or frame damage are never accepted.
The inspection process includes an oil change and a new coat of paint, wax, and seal. The company even suggests that you take your car to a certified mechanic to check it out during your test own period if you want.
Although you aren’t truly purchasing a car sight unseen because of the online 3D showroom experience, you can still get peace of mind from Carvana’s return policy. Whether you pick up your car at a Carvana Vending Machine or you have it delivered, everyone gets a seven-day probationary period, which they call a Test Own. If you aren’t satisfied for any reason, you can cancel the purchase. Just contact customer support before 5 PM EST on the seventh day from your pickup or delivery.
Carvana will contact you on the sixth day to check on your satisfaction. If you’re not happy, they will pick it up and issue a refund.
There are a couple of things that customers should know about this policy:
Each purchase comes with a 100 day/4,189 mile Worry Free Guarantee through SilverRock, which covers basic and powertrain components. Carvana found that most people drive 41.89 miles on average in a given day, so the warranty is meant to actually last the average driver the full 100 days.
You can also opt for an added Extended Carvana Care warranty for an additional fee, if it’s offered on your vehicle.
Both warranties include roadside assistance and customers can contact customer service to add the extended warranty during your seven-day test own.
If you live in a local area or can meet in one, you can trade-in or sell your car to Carvana. You can fill out a quick appraisal online to get a no-haggle offer.
The company even hangs on to your trade in for the 7-day guarantee period, in case your new car doesn’t work out. However, if you did drive over 400 miles, you will have to pay the mileage fee before getting your trade-in back.
No trade-ins if you live outside the local area and get direct delivery.
Trade-ins don’t have to be up to Carvana’s rigorous quality standards. They just have to be able to safely do a test drive during the appraisal appointment, have a working odometer, and be newer than 1992.
Carvana offers its own car loan financing, serviced by Bridgecrest. Users can set financing terms with interactive dials and upload a few documents to complete their financing offer. You can even sign online.
Minimum requirements for financing:
Although bad credit is accepted, approval is based on your credit history, annual income, and how much the vehicle costs. After you fill out a basic application for pre-approval, you will be able to see your personalized financing terms and monthly payment under each vehicle listing. Pre-approval is good for 45 days and only does a soft credit inquiry.
Once a customer chooses a car and selects to go forward with the buying process, then a hard credit check will be performed.
Check out our review of Carvana Car Loans.
Carvana isn’t quite everywhere yet. If you live outside of a local delivery area (listed above), then you can choose to fly to pick it up and drive it back or pay for direct delivery, which costs $399.
While the fee is not a part of the actual car purchase itself, it can be included in your financing.
Regardless of how you take possession of the car, you are still eligible for the seven-day money back guarantee. The only catch is that if it was a direct delivery, the $399 fee is not refundable. Additionally, it can take 5-15 days for the car to be picked up. If you want to exchange for a different car, the first vehicle has to be confirmed as picked up before you can order another one, so you will be left waiting for a little while.
While it is convenient that Carvana offers its own financing, it doesn’t allow anyone to co-sign with you. If you need to have a co-signed loan, then you can still shop with Carvana, but you will just have to finance through a third party option like a credit union or other lenders.
If you live outside of the local area, it can take a bit to get your car due to unexpected delays like transportation or weather issues.
Additionally, before your car is loaded up to be delivered to you, a pre-delivery inspection is performed, including a test drive. If any cosmetic or mechanical issues are found, there may be a delay while they fix it.
If there are any delays, a customer service rep will contact you and you will get updates via email, phone, or text.
Carvana is a haggle-free company. Cars are competitively priced and free of dealer or document fees, but also set prices are non-negotiable.
If you are the type who would like leeway to negotiate your trade-in, this is not the place for you. As part of the company’s effort to provide a hassle-free experience, after you fill out the online appraisal, that is your final offer. There is no price matching or haggling for a trade-in credit value.
While it is clearly great to deal with Carvana and its customer-first policies, it is hard to say what the delivery experience will be like with its local delivery partners across the country.
Carvana is an e-commerce platform that offers an easy car buying experience for people who don’t want to play games when car shopping. A technology friendly business model lets users avoid talking to any salespeople and truly buy a car online, even down to the auto loan. This is the car website that many used car shoppers have been dreaming of.
Honestly, the only reason why we were able to find “Bad” things about buying a car online with this company is because the site’s online FAQs are so transparent regarding the company’s standard procedures and customer service policies.
Most other car finders will not have the same types of cons because they do not offer a full-service experience.
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